A forensic audit is a specialized examination of financial records to detect, investigate, and prevent fraud, embezzlement, or other financial misconduct. Unlike standard audits that focus on verifying financial accuracy, forensic audits are investigative in nature and often support legal proceedings. These audits are typically triggered by suspicions of irregularities such as financial statement manipulation, …
A financial audit is an independent examination of a company’s financial statements and related operations to ensure they are accurate, complete, and in accordance with applicable accounting standards. In Malaysia, this typically refers to compliance with Malaysian Financial Reporting Standards (MFRS) or Private Entity Reporting Standards (PERS). The main objective of a financial audit is …
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Non-Governmental Organizations (NGOs) and charities in Malaysia are subject to unique audit requirements due to their funding structures and public accountability. Although these entities may not operate for profit, they handle significant public or donor funds and must maintain financial transparency. Registered NGOs are often required by law—or as a condition of grant funding—to produce …
What Are the Special Audit Requirements for NGOs and Charities? Read More »
The Inland Revenue Board (LHDN) conducts tax audits to ensure that individuals and businesses comply with the Income Tax Act 1967. A tax audit examines a taxpayer’s records and financial documents to verify that tax returns are accurate and that the correct amount of tax has been paid. There are two main types of LHDN …
Understanding Tax Audits by LHDN and How to Respond Read More »
Internal controls are systems, policies, and procedures designed to ensure the accuracy and reliability of financial reporting, safeguard assets, and promote operational efficiency. These controls play a critical role in determining the scope, effectiveness, and outcome of an audit. Strong internal controls lead to more efficient audits. When controls are robust, auditors can rely on …
In Malaysia, only licensed auditors approved under the Companies Act 2016 can perform statutory audits. These professionals must hold a valid audit license issued by the Ministry of Finance and be registered with the Malaysian Institute of Accountants (MIA). Key Qualifications of a Licensed Auditor: What Licensed Auditors Do: Importance of Engaging a Licensed Auditor: …
Who Can Perform an Audit in Malaysia? (Licensed Auditors Explained) Read More »
Failing to submit audited financial statements in Malaysia is a serious offense under the Companies Act 2016. All companies (except exempt private companies that meet specific criteria) are legally required to prepare and lodge audited financial statements annually with the Companies Commission of Malaysia (SSM). Failure to do so may result in the following consequences: …
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The Companies Act 2016 governs the audit requirements for businesses incorporated in Malaysia. Under this law, most companies are required to prepare and submit audited financial statements annually. The law aims to ensure financial transparency, proper governance, and accountability to stakeholders. Section 267 of the Companies Act 2016 stipulates that every company must appoint at …
What Are the Audit Requirements Under the Companies Act 2016? Read More »
In Malaysia, companies are generally required to undergo an annual statutory audit. This requirement is outlined in the Companies Act 2016, which mandates that most companies must submit audited financial statements annually to the Companies Commission of Malaysia (SSM). Here’s a breakdown of how frequently audits should be conducted based on company type and status: …
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The Inland Revenue Board of Malaysia (LHDN) plays a crucial role in enforcing tax compliance across Malaysian businesses. While LHDN does not conduct financial statement audits like statutory auditors do, it carries out tax audits to ensure that companies are correctly reporting their income and paying the appropriate amount of tax. A statutory audit, required …
How Does the Inland Revenue Board (LHDN) Relate to Company Audits? Read More »
